How is Need for Improved Road Safety Driving Automotive Telematics Market?
Authorities and people alike are becoming increasingly concerned regarding the growing number of road accidents across the globe. According to the Association for Safe International Road Travel, about 1.35 million people die every year because of road crashes, and approximately 3,700 people die on an average every day on the roads. Attributed to such factors, automobile manufacturers are trying to come up with new solutions which can help in enhancing the safety of vehicles. One of the ways that can aid in improving road safety is the integration of vehicles with automotive telematics systems, which enable the transmission of computer-based information over very long distances.
While talking about automotive telematics, the term telematics does not just refer to global positioning system (GPS), but includes emergency warning systems, fault detection systems, driving assistance systems, fleet tracking systems, and wireless safety communication as well. Telematics can play a significant role in traffic management, as it has the ability to aid the driver with utilizing a number of services, such as usage-based insurance, parking management, on-board entertainment, and automatic toll transactions. Furthermore, telematics enables the tracking of vehicle speed, wind speed, and moisture on the roads. Because of all these advantages, the demand for automotive telematics is increasing rapidly.
According to a P&S Intelligence report, the global automotive telematics market attained a value of $27.7 billion in 2019, which is expected to rise to $149.9 billion in 2030, progressing at a 16.6% CAGR during the forecast period (2020–2030). Both commercial and passenger vehicles can be integrated with the telematics technology. While manufacturers are increasingly integrating passenger cars with telematics systems, the demand for these systems for commercial vehicles is also projected to rise considerably in the coming years. This is because of the strict government regulations and growing adoption of cloud-based fleet management telematics systems by fleet owners across the globe.
Hence, the demand for automotive telematics is increasing due to the need for improving road safety and growing adoption of connected cars.
Source: P&S Intelligence
